Planning Your HR Needs for 2010

Not many business owners have reported that 2009 has been their best year.  In fact, many may wish it was over already. 

It’s time, however to put those feelings aside and begin planning for 2010.  This process typically is heavily weighted towards budgeting and financial planning. 

There is a very clear cost to your human capital, but have you thought about how your employees can add value and return on that investment?  This is the time to plan!

The first way that your employees can add value is in the planning process itself.  Your employees have been on the front line, attracting customers, ensuring quality and reducing costs.  Tap their expertise.  This will not only improve your operation, but it will also add to your employees’ development and increase their motivation.

Start by looking back at 2009.  Don't worry, not for long!  Try to find the bright spots.  What worked well?  Build on those successes, no matter how small. 

Take an objective look at what didn't work---not in an accusing way, but in the spirit of improvement.  Make this a safe environment for employee feedback and refrain from blaming and retribution.

Now take a look the future and set clear business objectives and then translate those objectives into human resources solutions and plans.  For example:

• How can employees be developed to value improvement and productivity? 

Possible answers include the development of more formal performance management and appraisal policies, training and development and improved employee communication. 

• Do you have the right people? 

Hiring processes may need tweaking, job descriptions may need to more accurately capture the necessary competencies.  2010 may be the perfect year to proactively start the recruitment process to hire some of the highly qualified people who have been displaced by the economic downturn.  

• What do you do to achieve your revenue and profit objectives? 

Develop clear measures and set individual employee goals.  Think about rewards, financial and non-financial that will reinforce progress toward your company’s success.

Understand that not all of these options are necessary or even possible, but work to prioritize, plan implementation, follow-up and measurement of these activities. 

Then, through the year, continue to engage employees in the discussion of your progress. 

Will things change?  Absolutely, change always happens.  But, with this extra effort to plan HR practices, the change will more often than not, work in your favor! 

Happy New Year!

It’s time to put 2009 aside and begin planning for 2010.